Construction Partners (ROAD)
NASDAQ:ROAD
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Earnings Data
Report Date
Aug 07, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
1.09Last Year’s EPS
0.81Same Quarter Last Year
Strong Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive operational and financial story: strong top-line growth (+35% revenue), robust adjusted EBITDA growth (+35%), significant backlog ($3.14B) with high coverage (80%–85%), improving cash flow (+~17% year-over-year) and continued disciplined M&A and vertical-integration progress. Headwinds are manageable—leverage remains above target (3.23x), GAAP net income was modest for the quarter, and commodity/weather exposures persist but are mitigated through indexing, hedges and terminals. On balance, the positive drivers and raised guidance materially outweigh the noted challenges.Company Guidance
Strong Revenue Growth
Revenue for Q2 was $769.2 million, up 35% year-over-year, driven by 11% organic growth and 24% acquisitive growth.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA was $93.3 million, up 35% year-over-year, with an adjusted EBITDA margin of 12.1% in the quarter and fiscal year guidance targeting a 15.38%–15.45% adjusted EBITDA margin.
Gross Profit Improvement
Gross profit was $98.9 million, up approximately 39% year-over-year; gross profit margin increased to 12.9% from 12.5% a year ago (up ~0.4 percentage points).
Backlog Growth and Coverage
Project backlog totaled $3.14 billion at quarter end, with approximately 80%–85% of the next 12 months' contract revenue already covered, supporting near-term revenue visibility.
Strong Cash Flow and Balance Sheet Liquidity
Cash flow from operations was $65.2 million in Q2, up from $55.6 million year-over-year (about a 17% increase); cash and equivalents were $77 million with $150 million available under the credit facility (net of letters of credit).
Disciplined M&A and Organic Growth
Completed Four Star Paving acquisition (4th in FY2026, 17th since FY2024) and added a new Gastonia greenfield to service a $60 million contract — acquisitive activity contributed 24% of Q2 revenue while management continues to target ~7%–8% organic growth for FY2026.
Vertical Integration and Commodity Risk Management
Over 50% of liquid asphalt demand is supplied internally, more than 80% of revenue is protected by a liquid asphalt index, and the company employs physical diesel hedging and terminal storage (roughly 2–2.5 months of inventory), limiting near-term energy volatility impact.
Robust Demand Environment and Notable Project Wins
Management highlighted strong demand across public and private markets with examples including ~8 data center projects in Texas (~$100M), 12 warehouse projects in Tennessee (~$28M), a $150M road widening in North Carolina and a $27M taxiway reconstruction at Eglin AFB; the company expects continued Sunbelt-driven growth.
Raised Full-Year Guidance
Management raised FY2026 guidance to revenue of $3.59B–$3.65B, adjusted net income of $170.4M–$174.2M, adjusted EBITDA of $552M–$564M, and affirmed ROAD 2030 long-term targets (double size, $1B EBITDA target, ~17% EBITDA margin by 2030).
ROAD Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ROAD Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 08, 2026 | $131.36 | $140.48 | +6.94% |
Feb 05, 2026 | $114.77 | $127.65 | +11.22% |
Nov 20, 2025 | $104.19 | $100.43 | -3.61% |
Aug 07, 2025 | $93.43 | $104.59 | +11.94% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Construction Partners (ROAD) report earnings?
Construction Partners (ROAD) is schdueled to report earning on Aug 07, 2026, After Close (Confirmed).
What is Construction Partners (ROAD) earnings time?
Construction Partners (ROAD) earnings time is at Aug 07, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ROAD EPS forecast?
ROAD EPS forecast for the fiscal quarter 2026 (Q3) is 1.09.